American Tower (AMT), a real-estate investment trust (REIT) focused on communications sites and data center facilities, is one of the potential bidders keen to acquire France-based TDF Infrastructure, The Financial Times reported. The potential sale of TDF Infrastructure could generate €8 billion to €10 billion.
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TDF’s owners, including 45% stakeholder Brookfield Asset Management (BAM), have appointed bankers from BNP Paribas (BNPQY) and UBS (UBS) to find a buyer for the French infrastructure and digital network operator. The latest move follows several failed attempts to sell TDF in recent years. Furthermore, APG Asset Management, Arcus Infrastructure Partners, and Canadian pension fund PSP Investments jointly own 45% of TDF. Reportedly, Crédit Agricole Assurances, a 10% stakeholder in TDF, is not seeking to sell the company.
AMT Emerges as a Potential Bidder for TDF Infrastructure
American Tower entered the European market in 2012. AMT already owns 4,400 towers in France, with CEO Steven Vondran stating earlier this year that the company sees the “potential” for further acquisitions in Europe.
According to The Financial Times report, private markets firm Ardian, Swedish alternative assets investor EQT Group, and Paris-based infrastructure fund Antin (FR:ANTIN) are the other potential buyers for TDF, which operates over 8,000 mobile towers across France for telecom companies like Orange (ORANY) and Free.
Previous attempts to sell TDF failed as the company struggled amid intense competition from other tower operators. However, TDF is now a leaner company following the sale of its fibre broadband network to DIF Capital Partners in December 2024, which increases the possibility of a deal. That said, elevated interest rates and a slowdown in the demand for tower assets in the private sector continue to be major headwinds.
Is AMT Stock a Good Buy?
Most analysts are bullish on American Tower stock due to long-term trends in 5G, mobile data, and artificial intelligence (AI)-driven demand for data centers.
With 14 Buys and two Holds, Wall Street has a Strong Buy consensus rating on American Tower stock. The average AMT stock price target of $248.86 indicates 27.6% upside potential from current levels. AMT stock has risen 6.4% year-to-date.
